Operation Refinance has hit a snag. Last week I was checking with a friend to see if they’ve made any progress with refinance. Unfortunately life got in the way and they haven’t called one of the mortgage specialists to get a quote. However we’re back on track again and we’re moving forward.
FHA Mortgages and Streamline Refinancing
While getting information on possible refinance options for them, I found out about streamlining FHA mortgages. My lender had information on their site and I decided to dig a bit further on HUD to find out more.
It’s available to homeowners who:
- currently have existing FHA mortgages made before June 2009
- have a mortgage that is current with payments
- can lower their principal/interest payments with the refinance
- are NOT getting a cash out refinance
If you meet these requirement, it may be very financially rewarding for you to contact your current lender to see if they offer this refinance option.
If you do qualify for a streamline, there are numerous benefits for you, including:
- Less documentation required for the refinance
- No appraisal needed
- Lower mortgage insurance premiums
The lower mortgage insurance premiums can give some significant savings as FHA has reduced the upfront premium to 0.01% of the total loan and the annual premium to 0.55% of the mortgage.
Lenders can also vary with certain aspects of the refinance – some have no cost loans. That typically means that means that the borrower get a slightly higher interest rate than if they paid closing costs with the refinance.
Before you sign up for a streamline refinance, please check with the lender to make sure you understand all the details of the process.
Thoughts on FHA Streamline Refinancing
How about you – have you tried getting a streamline refinance for your mortgage? How many of you are think about refinancing in the near future?